5th February 2025, Kathmandu
Swet Ganga Hydropower and Construction Limited has posted a net profit of NPR 10.25 crores for the second quarter of the current fiscal year, a remarkable turnaround from the previous year’s loss.
Swet Ganga Hydropower Q2 Profit
Turnaround from Loss to Profit
Last year, the company reported a net loss of NPR 253,000 during the same period. The shift to profitability comes after a significant rise in electricity sales revenue. This year, Swet Ganga generated NPR 51.26 crores from electricity sales, marking an increase of 10.85% compared to NPR 46.24 crores in the previous year.
Increase in Revenue from Power Sales
The company attributes its positive financial performance to the rise in electricity sales. Increased demand and higher energy production contributed to this growth. The higher revenue has offset previous losses, boosting the company’s net profit.
Improved Financial Management
In addition to increased revenue, Swet Ganga benefitted from lower financial expenses. This reduction helped improve the company’s overall profitability. The company’s financial expenses decreased by 22.13%, contributing to a 10.33% increase in total net profit and a 15.91% rise in operating profit.
The company’s Capital and Earnings
Swet Ganga’s paid-up capital currently stands at NPR 1.593 billion. However, the company’s retained earnings remain negative, totaling more than NPR 342 million. The company’s reserve fund holds NPR 2.177 million.
Earnings per Share (EPS)
As of the second quarter, the company’s earnings per share (EPS) has reached NPR 6.44. The net worth per share is recorded at NPR 78.66. These figures indicate an improvement in the company’s financial standing.
Improvement in Shareholder Value
Swet Ganga’s price-to-earnings (P/E) ratio is 39.83 times. This ratio reflects the market’s confidence in the company, despite its negative retained earnings. The increase in EPS and the growth in net worth per share indicate a positive trend in shareholder value.
Future Outlook
Swet Ganga Hydropower remains optimistic about the future. The company’s consistent revenue growth and effective cost management have positioned it for continued success in the coming quarters. With electricity sales showing a positive trend, Swet Ganga aims to maintain this upward momentum in the future.
In conclusion, Swet Ganga Hydropower has demonstrated strong financial performance this fiscal year, with higher revenue, improved profitability, and efficient management of monetary expenses. Despite challenges in retained earnings, the company’s current performance reflects promising prospects for its growth and stability.
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